Post-correction rally encourages FIL buyers to overcome the $11 barriers. Should you consider being bullish in this recovering market?
Key Technical Points:
- The FIL price currently trades at $9.31 with an intraday gain of 8.27%
- 20% discount on FIL price poured more buyers into the market.
- With a market cap of 2.32 billion, the intraday trading volume of Filecoin has increased by 70% to reach $754 million.
Past Performance of FIL
Amid the past month’s uncertainty in the crypto market for a potential bottom, the FIL/USDT pair is under the influence of a descending trendline. However, on July 28th, the altcoin gave a decisive breakout from the trendline resistance, which released the trapped bullish momentum. The post-retest rally marked a record high of $11.24, registering a 117.8% growth.
Source – Tradingview
FIL Technical Analysis
Earlier this week, the FIL price witnessed a minor correction in response to the profit booking from short-term traders. This pullback tumbled the altcoin by 20.8% and tested the $8 psychological level. However, the bullish reversal has surged the price by 13.3% in two days. Furthermore, the rising 50-day SMA indicates the buyers govern the short-term. Moreover, the breached 100-day gets flipped to offer bullish support. The RSI slope is nearing the overbought boundary indicating strong buying from traders. Moreover, the rising fast and slow lines in the MACD indicator indicate sustained bullish momentum. Hence the technical indicators are bolstering the resumption of prevailing recovery. In a nutshell, the FIL technical analysis advises the traders to wait for price action to break the $11 supply zone to reinforce further recovery.
The sustained buying pressure would allow FIL price to rechallenge the $11 resistance. A bullish breakout from this resistance would indicate the buyers are ready for another leg up, offering potential buyers a 20% growth opportunity. Conversely, another failed attempt to surpass the overhead resistance would signal weakness in bullish commitment and trigger a significant correction. Resistance Levels: $11 and $12 Support Levels: $8 and $6.33